ScoreComparison
Why is Omnicom Group, Inc. ?
1
High Management Efficiency with a high ROCE of 38.22%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.02 times
3
Poor long term growth as Net Sales has grown by an annual rate of 2.63% over the last 5 years
4
Flat results in Jun 25
- ROCE(HY) Lowest at 33.96%
- EPS(Q) Lowest at USD 1.31
5
With ROCE of 32.55%, it has a fair valuation with a 3.20 Enterprise value to Capital Employed
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -13.06%, its profits have fallen by -2.2%
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -13.06% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Omnicom Group, Inc. should be less than 10%
- Overall Portfolio exposure to Media & Entertainment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Omnicom Group, Inc. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Omnicom Group, Inc.
2.78%
-0.36
30.86%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.57%
EBIT Growth (5y)
5.77%
EBIT to Interest (avg)
9.73
Debt to EBITDA (avg)
1.02
Net Debt to Equity (avg)
0.67
Sales to Capital Employed (avg)
1.44
Tax Ratio
27.70%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
38.22%
ROE (avg)
44.33%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
2.43
EV to EBIT
13.14
EV to EBITDA
11.80
EV to Capital Employed
2.17
EV to Sales
1.85
PEG Ratio
NA
Dividend Yield
2.02%
ROCE (Latest)
16.49%
ROE (Latest)
11.99%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bearish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend20What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 3,171.8 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 76.6 %
NET SALES(Q)
Highest at USD 6,242.9 MM
CASH AND EQV(HY)
Highest at USD 11,169.2 MM
DIVIDEND PER SHARE(HY)
Highest at USD 1.5
PRE-TAX PROFIT(Q)
Highest at USD 637.7 MM
NET PROFIT(Q)
Highest at USD 451.6 MM
-15What is not working for the Company
ROCE(HY)
Lowest at 0.91%
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.5 times
INTEREST COVERAGE RATIO(Q)
Lowest at 765.46
RAW MATERIAL COST(Y)
Grown by 6.22% (YoY
INTEREST(Q)
Highest at USD 119 MM
Here's what is working for Omnicom Group, Inc.
Operating Cash Flow
Highest at USD 3,171.8 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 6,242.9 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Net Sales
At USD 6,242.9 MM has Grown at 69.17%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Debt-Equity Ratio
Lowest at 76.6 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Pre-Tax Profit
Highest at USD 637.7 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 637.7 MM has Grown at 50.69%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 451.6 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 451.6 MM has Grown at 56.97%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Cash and Eqv
Highest at USD 11,169.2 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend per share
Highest at USD 1.5
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Depreciation
Highest at USD 166.9 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Depreciation
At USD 166.9 MM has Grown at 69.79%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (USD MM)
Here's what is not working for Omnicom Group, Inc.
Interest
At USD 119 MM has Grown at 46.37%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 765.46
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debtors Turnover Ratio
Lowest at 1.5 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Interest
Highest at USD 119 MM
in the last five periods and Increased by 46.37% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Raw Material Cost
Grown by 6.22% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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